In the past, M&A due diligence meant lawyers having to sift through piles of paper to assess the performance of a seller. Modern technology gives lawyers and other dealmakers the ability to perform their analyses with speed and efficiency previously impossible.
Tech Due Diligence
In the midst of cybersecurity threats and GDPR regulations, conducting due diligence on tech is essential for the health of your company. A proper tech due diligence procedure involves evaluating a software company’s security vpn and ensuring that they are fully compliant. It also examines the extent and strength of the company’s portfolio of intellectual property, and identifying any potential problems.
When acquiring a company when you are buying a business, it is essential to understand the financial structure of a company and ensure that all parties have similar expectations. A thorough due diligence can uncover problems such as understated net losses, tax unreported liabilities, risks of non-filing, payroll taxes and sales and use tax.
During the due diligence process, it’s crucial to have a clear plan to gather and share all necessary information. A set of playbooks, that can be utilized throughout the process by teams helps to keep everyone on the right path and ensures consistency. Loopio’s team workspaces and collaboration features help teams focus on their work and avoid getting distracted by other tasks.